New resource estimate ramps up confidence in Besra’s Jugan gold deposit

• Besra releases updated resource on Jugan project
• The revised 721,000oz resource includes a new underground component
• Next steps will include the completion of geo-technical drilling, expected by June 2025

Special Report: A refreshed 13.5Mt resource grading 1.7g/t gold for 721,000oz at the Jugan project in Malaysia has been established, setting its owner Besra Gold up to pursue a hybrid open pit and underground mine development.

The revised resource reflects a smaller total estimate when compared to the one used in a 2012 study (19.7Mt at 1.52g/t for 960,000oz) but is offset by a ratio of higher resource classifications, with 89% of the resource represented by measured and indicated.

These numbers include a higher quantum of measured ounces – up 26% to 209,000oz – as well as a higher percentage of measured – 29% versus the previous 17%.

Besra Gold’s (ASX:BEZ) revised mine plan now has far greater likelihood of future decision maker approval, due to its alignment with current stakeholder expectations.

It includes an underground component of ~4Mt grading 2.05g/t gold for 263,000oz based on the results from all drilling completed on site since late 2012 up until February 2025, which will minimise surface and environmental impacts and enhance co-existence with other land users.

The drilling mostly comprises infill with some offset drilling. It has confirmed the surface footprint extent of and provided greater grade control of the envelope of mineralisation.

Advantages to hybrid mine design

Jugan, part of the broader Bau Corridor goldfield, is situated in south-western Sarawak, a Malaysian state on the island of Borneo.

The Bau Goldfield corridor lies within the arcuate Borneo metalliferous belt, known for its mesothermal to epithermal gold mineralisation, often associated with antimony, arsenic and sulphide minerals.

Historically, the commercial development of Jugan was based exclusively on an open pit operation, however several factors have emerged which support the reassessment of a combined open-pit and underground extension.

These include increasing competing land-use challenges, heightened environmental considerations, increasing gold prices and a better understanding of the mineralised body following additional infill drilling conducted since 2021.

The hybrid mine design provides multiple potential advantages from reducing the risk of pit inundation during extreme weather events by incorporating smaller open pits at surface and reducing the strip ratio via underground extraction, facilitating access to deeper mineralisation not otherwise economically accessible through open cut means.

Approval of state decision makers

Matthew Anthill, managing director of Besra’s Malaysian subsidiary North Borneo Gold Sdn Bhd, indicated the updated resource will put the company on a solid footing ahead of approval activities.

“It is far more likely to garner the future approval of State decision makers,” he said.

“It is imperative that our proposal recognises that both community expectations and physical conditions have changed considerably since the 2012 feasibility study was completed.

“That study adopted a large-scale open pit and adjacent wet tailings facility, which by today’s standards is considered inappropriate land usage of strategic portions of the Sarawak River floodplain and adjoining catchment area.”

What now?

Anthill said next steps will include the completion of geotechnical drilling (expected by June 2025), the appointment of a bankable feasibility study Manager, BFS level metallurgical testwork and mobilisation of an RC rig to Jugan for hydrogeological test work.

Samples for met testing are already enroute to a Perth laboratory.

These activities will be undertaken in parallel with the construction and commissioning of the Jugan pilot plant, once renewable of the ML 05/2012/1D is approved.

This article was developed in collaboration with Besra Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.